RICHARD RUSSELL: 'There Is An Ominous Something Out There Waiting To Materialize'

The author of the Dow Theory Letters, Russell writes on King World Newsthat the "big money" — shorthand for savvy investors — do not like what they're seeing in the market.

"My guess is that this is the big money that has been holding off as long as it decently can -- and then dumping their goods just before the close. I don't think the big money likes this market, and I think they have been slowly exiting this market, as quietly as they can."

Russell is convinced something terrible is on the horizon for the markets. What it is ain't exactly clear — a European depression? More bad housing news? Whatever it is, it's time to plan for the worst.

"The big money tends to look out six months to a year or so, and there is something ‘out there’ that they see -- but don't like. Is it a rise in interest rates, is it the power of the Chinese yuan, is it a further collapse in real estate values?

"Honestly I don' know what it is, but I'm convinced that there is an ominous something out there waiting to materialize. The big money, the institutional money, doesn't want to be in this market when it materializes.”